[ad_1]
The International Monetary Fund (IMF) on Monday projected an annual inflation of up to 1,000,000% in Venezuela and stressed that the magnitude of the crisis may increase the migratory consequences for neighboring countries.
"We project an epidemic of inflation up to 1 000 000% by the end of 2018, to indicate that the situation in Venezuela is similar to that of Germany in 1923 or Zimbabwe in the late 2000s, "said Alejandro Werner, chief economist for Latin America.
" The collapse of economic activity, l & # 39; hyperinflation and the increasing deterioration in the provision of public services (…) as well as the lack of food and subsidized prices have generated significant migratory flows whose effects will tend to intensify in the regions. neighboring countries, "warns the report.
Violence and lack of work, food and medicine have resulted in the disappearance of 1.6 million Venezuelans in the past two years, according to some estimates. More than a million, has entered Colombia in the last 16 months, according to Colombian official figures. Between 2017 and 2018, some 128,000 people entered Brazil and about 68,000 of them went to other countries. Peru has welcomed more than 353,000 in the last two years, according to the authorities The economic crisis shows no sign of easing, according to the IMF
Venezuela will continue "with a high budget deficit fully financed by the Expansion of the monetary base ". , by issuing a new currency, says the report. This scenario "will continue to fuel an acceleration of inflation as the collapse of the currency demand continues," the report adds.
The IMF warns that by 2018, it expects a contraction in GDP of 18%, the "significant reduction in oil production". Thus, the Fund said, it is the third consecutive year of a real decline in Venezuelan GDP double-digit.
According to the IMF, in 2016, the economy of the South American oil giant contracted by 16.5%, and the year he did it for the last time with 14%. If the forecast of -18% this year is confirmed, the country would accumulate a recession of more than 45% in three years.
The IMF also downgraded its growth forecast for Latin America from 2% to 1.6% from April. The Fund has reduced its expectations for Argentina, a country where a severe crisis has forced to apply for financial aid. According to the IMF, Argentina will grow 0.4% this year, with anticipation of a 2% advance in April
[ad_2]
Source link
